Azerbaijan's credit rating at 'BB+/B' neutral for its Eurobonds - Gazprombank

Economy Materials 26 January 2022 16:40 (UTC +04:00)
Azerbaijan's credit rating at 'BB+/B' neutral for its Eurobonds - Gazprombank

BAKU, Azerbaijan, Jan. 26

By Sadraddin Aghjayev - Trend:

The affirmation of Azerbaijan's rating by S&P at the current 'BB+/B' level, while maintaining the "Stable" outlook, is neutral for Azerbaijani Eurobonds, Deputy Head of the Market Research Department at Russia’s Gazprombank Gulnara Khaidarshina told Trend on Jan. 26.

According to Khaidarshina, this confirmation is in line with Gazprombank's expectations, indicated in the report "Azerbaijan: we expect the rating from S&P to be confirmed at 'BB+' with a 'Stable' outlook".

"The press release on the results of the revision contained updated factors for raising and lowering Azerbaijan's sovereign rating,” she said. “At the same time, S&P noted that the "Stable" outlook reflects the continued positive impact of high hydrocarbon prices on the economy of Azerbaijan.”

Besides, according to her, Azerbaijan's budget and external liquidity parameters are among the best ones for the ‘BB’ rating group.

“S&P forecasts that external liquid assets in the form of the sovereign State Oil Fund (SOFAZ) will remain at levels close to 70 percent and the debt load - below 30 percent of GDP in the medium term,” the bank’s representative noted.

“At the same time, Azerbaijan's economic growth will normalize in 2022, but in the medium term, S&P forecasts the risks of weakening growth due to the development of oil fields,” added Khaidarshina.


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